4 Top Stock Trades for Thursday: DIS, TSLA, PYPL, PEP

top stock trades - 4 Top Stock Trades for Thursday: DIS, TSLA, PYPL, PEP

The market was volatile on Wednesday but didn’t make up much ground in either direction. The poor results from Netflix (NASDAQ:NFLX) and the expiring VIX contract made things extra difficult. So, with all of that in mind, let’s look at a few top stock trades for Thursday.

Top Stock Trades for Tomorrow No. 1: Disney (DIS)

Top stock trades for DIS
Click to Enlarge
Source: Chart courtesy of TrendSpider

With the aforementioned Netflix report out of the way — and shares falling about 36% as a result — it has other stocks like Disney (NYSE:DIS) in focus.

The stock is working on its fifth straight weekly decline here, as it tips below the 61.8% retracement of the entire range dating back to March 2020. Along with the gap-fill, it’s not a great look for Disney.

If it can reclaim these measures, the declining 10-week is in play, followed by the 200-week and 21-week moving averages near $140.

On the downside, however, let’s see if the stock can find its footing near $120. Otherwise, this one risks moving lower. While there may be value in it as an investment, from a trading perspective, there is not much to like at the moment.

Top Stock Trades for Tomorrow No. 2: Tesla (TSLA)

earnings preview for Tesla
Click to Enlarge
Source: Chart courtesy of TrendSpider

Netflix is in the earnings spotlight, but it will only last a few more minutes with Tesla (NASDAQ:TSLA) reporting tonight. The stock is at the lower end of its recent range, trading near $975.

If we get a bearish post-earnings move, bulls want to see the $925 to $940 area act as support. The latter is a former resistance level, while the former is the 50% retracement. In between is the 50-day moving average.

There are a lot of levels to consider in this range. However, below this area opens the door to the 200-day moving average and the 61.8% retracement.

On the upside, though, Tesla needs to clear its 21-day moving average. A gap to this measure and fade doesn’t do bulls any good. Above the 21-day opens the door to the $1,085 level. There the stock will find the 61.8% retracement of the current dip, along with the recent gap-fill level.

Top Stock Trades for Tomorrow No. 3: PayPal (PYPL)

Daily chart of PYPL
Click to Enlarge
Source: Chart courtesy of TrendSpider

This stock has been getting thrashed and, short of a few disappointing earnings reports, I am blown away by the underperformance. Like Disney, buyers in PayPal (NASDAQ:PYPL) make a better argument from an investment perspective than a trading perspective.

On a further decline, keep the $92.25 area on your radar. That is the current 2022 low. PayPal would likely test this level with a fair amount of bullish divergence, but it would need some sort of reversal near this mark for it to matter.

If it breaks $92.25 and continues lower, the pandemic low near $82 is the next most noticeable target.

On the upside, however, PayPal needs to regain $100. That’s followed by a test of its 50-day moving average, which has been resistance.

Top Trades for Tomorrow No. 4: PepsiCo (PEP)

Top stock trades for PEP
Click to Enlarge
Source: Chart courtesy of TrendSpider

I try to do a mix of stocks that are trending — in other words, stocks that people are looking up — but I also like to include stocks that are on my own go-to list as they have been trending in the right direction and trading well.

PepsiCo (NASDAQ:PEP) is one such stock.

Shares are booming higher after yesterday’s strong reversal and are trading into prior resistance near $176.50. If the stock can stay north of $175, let’s see if it can push higher into earnings next week.

On the upside, watch $178 as a possible upside target from here. Above that could put $183 in play. That’s likely difficult ahead of earnings, but it’s a possibility.

On the downside, though, I want to see this one hold the 10-day. Below it puts $170 and the 21-day in play.

On the date of publication, Bret Kenwell held a long position in PYPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.


Article printed from InvestorPlace Media, https://investorplace.com/2022/04/4-top-stock-trades-for-thursday-dis-tsla-pypl-pep/.

©2022 InvestorPlace Media, LLC